CIMB Research says the merger deal between MISC Bhd and Bumi Armada Bhd offers an opportunity for MISC to grow its portfolio of stable cashflow assets, while growth in the oil and gas environment is stagnant.
“If the pricing is right, this deal could be good for both companies,” the research house said in a note on Monday.
StarBizweek earlier reported that MISC is in preliminary discussions to merge its FPSO assets with Bumi Armada’s, in exchange for shares in the latter company.
MISC currently has 12 FPSO assets, while Bumi Armada owns nine FPSOs (six in operation, three under conversion).
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“If the pricing is right, this deal could be good for both companies,” the research house said in a note on Monday.
StarBizweek earlier reported that MISC is in preliminary discussions to merge its FPSO assets with Bumi Armada’s, in exchange for shares in the latter company.
MISC currently has 12 FPSO assets, while Bumi Armada owns nine FPSOs (six in operation, three under conversion).
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